Huffington Post political reporter Sam Stein appeared on MSNBC's Morning Joe today to discuss President Obama's plan to rein in the rising national deficit. Stein noted that the President is stuck in a tricky spot because concerns about not increasing the deficit are hurting his efforts to spend money to stimulate job growth. Ultimately, Stein argued, deficits will be less important than job growth. If Obama can stimulate job growth, then the government's tax receipts will increase and make handling the deficit a much more manageable problem.
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James Kwak: Budget Sense and Nonsense
With an opposition party ready to roll out its artillery at any mention of either Medicare cuts or tax increases, it's hard to see where a budget solution can come from.
Bill Scher: Sen. McConnell, if We're Really Spending too Much, Why Can't You Say What You'd Cut?
McConnell voted to raise spending during the Bush Administration. Since he now wants to cut government spending while opposing any tax increase, he must tell Americans which programs will go.
David
David
This is like giving yourself a transfusion from your left are to your right arm, and spilling half the blood on the floor, and saying, "I just need to do more of this and I'll be OK!".
You might try reading some history to get the answer to that. The U.S. practiced Keynsianism for most of the period from 1940 into the 1980's. Over all, the economy performed quite well, thank you.
The fact is that if the Obama tax proposals are enacted, U.S. taxes will equal about 20.5% of GDP. During most of the Bush years, that number was below 19.5% and no on would claim that he presided over a booming, job-creating economy. On the other hand, during the economic boom of the 90's, where jobs were created like crazy, taxes were about 21.5% of GDP.
So I would say that your claim has no basis in fact.
Should we ever be concerned about deficits? Yes, of course. But not at a time like this. The history lesson is there for all to see. Why are so many of us ignoring it?
President Obama has proposed a special tax on companies that make goods outside the USA in order to "create jobs" if they would return to the USA. The unintended consequence will be a steep inflation of the price of the goods any of these companies makes given the much more expensive labor costs in our country or else begin to pay its labor at rates comparable to Sri Lanka, China, India, etc.
If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.
* Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;
* The $250 teacher tax credit for classroom supplies;
* The tax deduction for up to $4,000 of college tuition and expenses;
* Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;
* The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-fre
* Obama wants to extend the tax cuts for lower income brackets, just not for those individuals making over $250K.
* Obama wants to INCREASE the tax deduction for college tuition to $10K.
* Don't know about the teacher tax credit but I think it's a crying shame that Repub carping about taxes at all levels of government over the past 25 years has helped to put teachers into a position where they have to buy their own classroom supplies.
But even if what you say were true Im OK with it.
We all need to pay to fix this country.
Thanks Reagan revolution.. LOL
I was amazed he said, "nothing."
He meant it.
He isn't conflicted.
Obama's meeting with Republicans was a good move for everyone. Obama will need to reign in the leadership of his own party to get things done which is never easy for Presidents. Dems are increasingly vulnerable as campaigning is not leadership and just like Republicans faced in recent years when you are the party in power more attention is paid to what you have done and said and you can't just be a sniper taking pot shots from the outside as the opposition gets to do.
Should be an intersting 2010
The Repub opposition is in an entirely different class. Heck, they even threaten Senate filabuster on measures that virtually all Repubs end up voting for, like extending unemployment benefits.
The point being Red or Blue, neither have your best interest at heart and they have both had a hand at running this country into the ground. The American people are so set on finger pointing and bickering back and forth amongst themselves that both parties are raping all of our futures.